How to Open a Liquor Store

Summary: Some of the fundamental requirements when it comes to opening a liquor store include: completing all paperwork, choosing what kind of store you want to set up (franchise, self-owned, or part of another store,) acquire a list of licensed liquor suppliers, and setting up security measures for your shop.

Liquor stores aren’t as easy to start like most other businesses.

Surprisingly, before you can even sell one bottle of liquor on your premises, you have to deal with cases upon cases of paperwork. Yes, paperwork – meaning you have to do lots of legwork on your own. If it is feasible, you need to retain the services of a lawyer to help you work out some fundamental issues of this business like contracts and zoning issues.

Like all things legal, you need to inquire about the all federal laws, state laws, city laws and county restrictions, not to mention zoning laws in your vicinity. A good lawyer can save you a lot of time and effort when deciphering these laws, and he can point you in the right direction should zoning issues about your liquor store become problematic. You need to find out also when you can actually sell liquor to your patrons. Different states, cities and counties have different restrictions as to the time any liquor store in their jurisdiction can sell their products. Non-compliance to the laws is considered a criminal offense.

If hiring a lawyer is not an option as of yet, then at the very least, you have to research all about liquor restrictions via the Internet before actually investing time and money into the venture. However, it should be stressed that hiring the service of a competent lawyer is really necessary when you are opening your own liquor store. If all systems seem to be working in your favor, you then must acquire your licenses and permits for your business – and these should be prominently displayed in your store at all times.

Your second option is choosing what kind of liquor store you actually want to set up. Establishing your own store under a name you have chosen for yourself is one option. Buying a franchise for an earlier established liquor store is another option. Setting up a part of a shop (say a small grocery store) with a few supplies of liquor is another option. Choosing from one of these three options is involves many things like budget, space and location, to name a few. One of the perks of buying a franchise is that the franchising office actually gives you a list of their liquor suppliers.

If however, you should decide to “wing it,” your next viable step is to get a list of suppliers for your liquor. This course of action also ends up with a pile of paperwork, and it would benefit you greatly to know all about alcohol beverage laws for retailers and licensee responsibilities. You cannot under any circumstance just buy liquor anywhere because there will periodic checks made by Alcohol and Tobacco Enforcement Agency. You also need to keep receipts from your sales and other invoices should the agents or police ask for them during these checks. Non-compliance to the Agency and its representatives can be considered as a misdemeanor.

You also have to consider the safety of your store personnel and the security of your liquor store. Liquor stores are, without a doubt, one of the most targeted stores for crime – you need to consider with utmost care on how you are to protect your investment. Installing high-tech gadgetry and posting security personnel in and around your store are options you may want to enforce, but vigilance is always the key to thwarting those who are most likely to attempt a hold-up or outright thievery.

104 Responses to "How to Open a Liquor Store".

19. Cristina on 1/30/2009 7:34:09 AM

Q: Are the laws regarding opening a liquor store in New York different from that of other places?
- One thing is for sure: you would need a license to operate a liquor store. Regarding actual selling, yes. For example, sale of beer in grocery stores is allowed, whereas wine and distilled spirits are not. In some states, these are all allowed for sale in grocery stores. Find the State specific norms before putting everything in a business plan.

Q: Where can I obtain laws regarding operating a liquor business?
- Since the sale of alcoholic beverages is a heavily regulated activity throughout the country, states have agencies that regulate how businesses conduct their trade. In New York, there is the State Liquor Authority.

61. John on 11/17/2009 12:49:28 PM

I thought about opening a liquor store and got a lot of info from the business license office. They said I would have to hire someone to survey where I wanted to open a store to make sure I wasn't close to any schools, churches, other stores.... I then would have to get other businesses to ok me to open my business (in writing) and then to get my business license I had to get it approved by city council. I also called one local supplier and the man I spoke with said I could start with a minimum of $100,000 but if I wanted to be competitive and successful that he would recommend starting with a minimum of $250,000. he also said I would have to use different supplier because there was only one supplier in town that could sell Jack Daniels and it wasn't them, and some only sold wine. He also suggested a few areas that would be better to open a store. He was very helpful. I learned a lot but never opened a store, mainly because of all the "red tape". But good luck to all of you who are successful in your endeavors!

73. Julia Wendel on 2/4/2010 1:32:50 AM

Thanks EVERYONE for your posts. We had a tough time at first, and every bit of info we can glean from the web is helping. This is a TON of work, but worth it. Everyone, make sure you are getting customers at first, that was more important for us than getting the liquor license, dealing with distributors etc. I agree with Rae L; Liquor Run Mobile is a great way to advertise. It's dirt cheap and they send us a report of how many people come to the store every week from the app. Go to their web site. other than that, we've had good luck with college newspapers. Our location sucks, so we have to advertise to make it happen. Julia & Randy

75. Peter Lee on 2/16/2010 12:04:42 AM

Hello everyone, I have managed to operate the liquor store for almost 4 years. I've started from the ground up. I've leased the space in the shopping strip mall when it was just the beams and framing. First things first. Forget about vacation!!! You have to be in the store everyday. If you don't micromanage the store. You will not make it. The profit margins are low. In my city I've manged to make 30% profit margin average. This is high in the city. Most of other stores are only 20% in that. Why competition! Most customers are paying by debit card or credit cards which means that your merchant processing fees will be high really high not high fees. Why because the amount of transactions dollars are high. The utility bill is high due to walk in cooler. expect to pay over $1000 on electric bills. The rent, insurance, alarm monitoring service, phone bills, water bills, trash bills, wages, sales tax, city, county and state beer, wine, malt beverages and liquor license fees, business license, tobacco license fees and more. I work everyday 6 days a week. From 10am to 10pm Mon-Th and 10am - 11:30pm Fri and Sunday. I'll cut it short. The bottom line is that you can not make profit if your profit margin is set low. If you do you won't make money. If you DO NOT have enough start up capital don't even start. It is very difficult to make it if you have takeout a loan from the bank. Think about it the bank note on the loan and all those fees and bills plus your wages and your employees.... Lastly what kills in this business is that if you sold 6 bottles of Jack Daniels 750ml, you can not reorder 6 bottles. You have to at minimum order a case. So if you sell 2 bottles here 3 bottles there and so on... you have to buy 1 case of each items. For me because of the competitions I have to buy deals meaning 5 or 10 cases of certain items your price will be much lower than buying a single case. As much as $3 per bottles. Now how are you going to compete with me when I'm selling $3 lower that you on the identical item. Ok if anyone have any questions email me. I will try to answer any questions. Good Luck everyone. Arm yourself with knowledge.

76. James on 2/20/2010 12:48:56 PM

Q: How do liquor selling laws differ by states? State laws differ in their control of beer, wine and distilled spirits. Grocery stores may or may not carry one or all of these depending on where it is located. The time that sale of alcoholic drink on-premises and off-premises may be allowed also differ by states. So does minimum purchase age. In most alcohol beverage control states, only the government runs specialty liquor stores. Only a few sell alcoholic beverages in all types of stores.

Q: Are there lawyers in New York city that specializes in helping businesses open a liquor store? The Law Office of Stacy L. Weiss http://www.stacyweisslaw.com/ is known for its liquor licensing service in New York. One law firm, based in Seattle that is actively practicing in the liquor law is Puget Sound, Miller Malone & Tellefson (http://www.mmtlawfirm.com/). It also serves the states of Washington and California. Liquor law firms help alcoholic beverage distributors and producers get or packaging and represent them before the Liquor Authority Board.

Q: What are the procedures and licenses required to open a liquor store? It will depend on which state you are opening a liquor store.

80. Thumper on 4/8/2010 9:49:42 PM

We purchased a liquor store last October. My first suggestion before you begin to buy is to thoroughly check out the prior owner, take their word on nothing. In Texas, you have to apply for your license through the TABC. They can also give most of the information on the prior owner that you might need to know. Check with all distributors as to whether prior owner has outstanding bills due. If so, then part of the inventory they are trying to sell you along with the store, technically is not theirs to sell, since they haven't paid for it. Ours is a Mom and Pop shop, so our inventory is limited. We make sure to carry everything our regulars ask for as they are what keeps us going. We try to keep up with trends and keep a few new items in stock. But you can't carry everything or order too many new items on a regular basis as you will eat up any potential profit. We started our store with $25,000. Ideally, $50,000 would have been better. Try to buy by the case if possible. If you can afford it, buy more than one case of good sellers, the more you buy the better the price and the bigger your profit. Our distributors will charge a per bottle charge, as much as $3.00 per bottle, if we break a case. Know your customers names if they are regulars, read the local paper and notice if there are weddings or new babies in your clients lives and be sure to mention it to them. People love to talk about themselves.

86. Kumar on 5/28/2010 10:33:15 PM

I wish to open a Liquor shop in NYC. I have gone through the ABC website regarding licensing procedure. I even spoke to them on phone, I am eligible for getting a license. They have explained to me about the self certification process. I would be thankful if anyone could give me some idea of some about the capital required to set up. I my try to locate a suitable store in NYC, what kind of rent $$ would make sense for Liquor store? What would be the initial cost to get a license? What would typical cost of furniture and fitting for a small to medium sized liquor store? For a start up store, what kind of inventory would be required in terms of $$. I read on the internet that more we buy, the better margins we would get? Is it true that there is around 25% to 30% returns in the Liquor business in NYC? Is 750 sq feet a reasonable size store including the storage space or do we need more space?

96. Adam on 7/16/2010 12:06:10 PM

I'd like to open a new Liquor Store in Brooklyn ,approx. how much money i need in my hand and for store how much rent and also what kind paper or documents i need so please can u send a email for helping. I would be thankful if anyone could give me some idea of some about the capital required to set up. What would be the initial cost to get a license? What would typical cost of furniture and fitting for a small sized liquor store? For a start up store, what kind of inventory would be required in terms of $$. I read on the internet that more we buy, the better margins we would get? Is it true that there is around 25% to 30% returns in the Liquor business in NYC? Is 450 sq feet a reasonable size store including the storage space or do we need more space? Thanks.

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